RE:RE:RE:Mack Garbage Truck Consumer Vehicles is a race to the bottom in terms of pricing. I have no doubt that initially it will be a greta income source, but over time the margins with be slimmed considerably.
With mid and heavy duty vehicles, the focus is on performance and reliability, and margins are likely to have both staying power, and size, just in dollars alone.
(Forgive these numbers, they are coming out of my a$$ right now, but just making a point) If you profit $200 from every system installed in a consumer vehicle, but you profit $1,000 from every heavy hauler, then you need only 20% of the sales numbers in order to make the same amount of money for us shareholders.
As soon as somebody else comes along with anything that compares to the coil driver as far as cost vs performance goes(not necessarily tech), then margins are now going to have to be reduced in order to keep revenue. The way that mid and heavy trucks are purchased, makes that less of an issue. Although price always matters, unlike in the consumer car industry, it isn't near as important.
Cheers!
Exronly wrote: Exro is building a facility that can make 100,000 units a year and they call that low volume. They are 100% geared to proving up the technology for cars. Toyota sells 20,000,0000 hybrids a year and everyone of them can use a coil driver I don't think Exro is chasing the big truck market as the end goal as the volumes are absolutley minuscule compared to the automotive world. Their whole focus is geared towards the EV cars the rest is gravy.
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